The Many Types of Coin Currency
Coin currency is a form of money that was invented to make it easier for people to trade goods and services. The first coins were made from precious metals such as gold or silver in ancient Lydia (modern-day Turkey), and they spread to other civilizations as people recognized the need for a standardized medium of exchange that could be easily carried around with them. Eventually, coins were replaced by paper money as economies grew and trading became global. The many types of currency coins that exist today give collectors a wide range of options to explore.
Each type of coin has its own unique history. In addition, they each have different methods for determining their value. Some coins have intrinsic or metal value, while others have extrinsic or fiat value. The intrinsic or metal value of a coin depends on the metal it is made from, and the extrinsic or fiat value of a coin depends on the authority that creates and regulates it.
A study of a coin’s design, content, and history can reveal important information about the politics, economics, and social climate of the time that it was minted. The coins of the Athenian and Corinthian cities, for example, were popular all over the Mediterranean world in ancient times. The widespread circulation of coins minted by Philip II of Macedon also testifies to his extensive trade links. Likewise, the discovery of Roman gold coins in India and of Arabic silver coins in Scandinavia confirms ancient trade routes.
While there are few currencies that still use coins, some places of business such as restaurants, gas stations, and grocery stores may accept them in place of cash. The American Numismatic Association recommends that anyone who receives coin in exchange for goods or services should store it in a secure, dry environment. The organization suggests using an acid-free envelope or a mylar flip, and it advises against storage containers that contain PVC or polyvinyl chloride.
In addition to being a great way to collect and preserve a bit of history, there are many creative and practical ways that people can put their old change to work around the home. Some of these include using the coins to create a homemade light switch or to create a custom wall plaque. In addition, some institutions, particularly local banks and credit unions, maintain automated coin-counting machines where you can drop your loose change in to have it automatically counted for you.
Coins are produced on an annual basis by the United States Mint, and they comprise a significant part of the country’s financial system. In addition to common circulation coins, there are bullion, proof and commemorative coins. Bullion coins have a high value based on their metal content, and proof coins are specially minted with a high-quality finish that makes them desirable to collectors. Learn more about the minting process and the various types of coin that exist for collectors at the Federal Reserve’s money website (Off-site). The Mint also has a video on the cash lifecycle that can be viewed here (Off-site).